Estimation of Forwarding and Shipping Cost:
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| Fig: Shipping and forwarding cost calculation method |
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SL No.
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Parameters
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Quantity & Cost
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|
01
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Order quantity
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10000pcs apparel
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|
02
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Total value
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Rs. 1000000
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|
03
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1 carton box
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200 apparel
|
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04
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Carton box size
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60cm× 40cm× 30cm
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05
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Freight charge for shoppers
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$40/m3 (1$= Rs. 45)
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|
06
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Terminal handling charges
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Rs. 250/m3
|
|
07
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Documentation charges
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Rs. 1000
|
|
08
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Transportation
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Rs. 8000
|
|
09
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Port charges
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Rs. 10000
|
|
10
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Custom expenses
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Rs. 12000
|
|
11
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Insurance charges (If any)
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Rs. 12000
|
|
12
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Agent commission
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0.2% of total value of the order
|
|
13
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Service charge
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Rs. 2000
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Solution:
The below formula has to apply in apparel shipping and forwarding cost calculation method:
Apparel shipping and forwarding cost per apparel,
Total expenses related with shipping
= ………………………………………………….. ……….. (1)
Shipping quantity
Now,
Total carton box,
= (Order quantity/No. of apparel in each carton)
= (10000/20)
= 50
Again,
Carton box volume,
= (0.6m × 0.4m × 0.3m)
= 0.072m3
So,
Total volume stands at,
= (No. of carton box × Volume of carton box)
= (50 × 0.072)
= 3.6m3
All Shipping Expenses Calculation:
Freight cost,
= (Total volume × freight charge × Rs. 45)
= (3.6 × $40 × Rs. 45)
= Rs. 6480
Again,
Terminal handling charge,
= (Total volume × charge)
= (3.6 × Rs. 250)
= Rs. 900
Again,
Documentation charge – Rs. 1000
Transportation charge – Rs. 8000
Port charges – Rs. 10000
Custom expense – Rs. 12000
Insurance charge – Rs. 12000
Agent commission (0.2% of total value) – Rs. 2000
Service charge – Rs. 2000
So,
Total expense cost stands at,
= Rs. (6480 + 900+1000+8000+10000+12000+12000+2000+2000)
= Rs. 54380
Now,
From the equation-01, we get,
Apparel shipping and forwarding cost per apparel,
= (54380/10000)
= Rs. 5.45
